Financial Management MCQ
- 03rd Apr, 2021
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Financial Management MCQ with Answers
1) The only feasible purpose of financial management is
2) Agency cost consists of
3) Heterogeneous cash flows can be made comparable by
4) Efficient frontier comprises of
5) Present value tables for annuity cannot be straight away applied to varied stream of cash flows.
6) Financial management process deals with
7) Investment is the _________
8) Financial management is mainly concerned with________
9) The primary goal of financial management is ________
10) Market value of the shares are decided by ________.
11) The expansion of CAPM is _________.
12) Working capital management is managing ________.
13) Future value interest factor takes _______.
14) Required rate of return>Coupon rate, the bond will be valued at
15) GST is a consumption of goods and service tax based on.
16) _________ are financial assets.
17) A bond is said to be issued at premium when
18) What does financial leverage measured?
19) The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgment and thinking, it is worse than useless.
20) EBIT is usually the same thing as
21) Savings accounts are ______ but are not ______.
22) Treasury bills are traded in the _______.
23) Treasury bills are traded in the _______.
24) Which of the following falls under Profitability ratios?
25) Net working capital is the excess of current asset over _______.
26) The coupon rate is another name for the ______.
27) Dividends are paid________.
28) The relationship between the cost of equity and financial leverage in accordance with MM proposition II can be expressed by
29) Earning Yield computed by
30) The Present Value of all inflows are cumulated in
31) Which is called as Dividend Ratio Method?
32) Which formula may be used for 'EPS'?
33) Factoring involves
34) If cash inflows are not uniform, the calculation of pay-back period takes a
35) Capital Employed is
36) The term "capital structure" refers to:
37) Operating leverage can be computed by
38) The proposal is accepted if the profitability index is more than
39) Which is the traditional method of Capital budgeting?
40) In the _______________, the future value of all cash inflow at the end of time horizon at a particular rate of interest is calculated.
Financial Management Online Test Questions (Financial Management FAQs)
1) Explain What is financial management?
Financial Management refers to the organizing, strategic planning, directing and even controlling the understanding of the finance in the institute or organization.
2) What is risk in financial management?
In financial terms risk is a scope which a person gains as a part of investment that may differ from an outcome or return which is unexpected. This includes the chance of losing some or even all the original investment.
3) On what basis the cost of debt capital is calculated?
For calculating the debt cost, the company needs to understand the whole interest amount which is paying in every debt of the year. Further the vision of this number is made as per the total debt. The reason is then the debt cost. To be precise the formula is interest rate multiplied by (1 - tax rate).
4) List different types of risk in financial management?
The common types of the financial risk are Credit risk, liquidity risk, asset-backed risk, foreign investment risk, equity risk, and currency risk.
5) What is an asset?
In the accounting of finance basically asset is the resource that is controlled and even owned by the business entity and even by economic entity. It is more like a resource with individual or corporation controls.
6) What is inventory management?
Inventory Management is one kind of systematic approach to store, source and even sell of the inventory which includes the finished goods and also the raw materials.
7) List some functions of Financial Management?
Functions of financial management are
- Estimating the Amount of Capital Required
- Determining Capital Structure
- Choice of Sources of Funds
- Procurement of Funds
- Utilisation of Funds
- Disposal of Profits or Surplus
- Management of Cash
- Financial Control
8) What is FMIS?
FMIS (Financial Management Information Systems) offers best possible supporting the integration and automation of the public financial management processes which includes the execution, budget formulation reporting and even accounting.
9) What are characteristics of a financially healthy institution?
A healthy organization is organization that comes with good income to make sure the programming is stable. There is also the financial health non profit solution which is now an internal cash source. It also includes the financial management, stability and even Institutionalization.
10) Explain heterogeneous cash flows?
Firstly, you must understand that cash flow is the rise of the money of an institution, business and even the individual. Further Heterogeneous cash flows is made comparable with Compounding or discounting technique